Transactions Contained in the Pass Book/Bank Statement
A Bank Pass Book refers to a Savings account Pass Book. It is issued by banks for a running or operating bank account. But practically, Pass Book is used to be issued for Current Account for limited transaction accounts, Recurring Deposit Account, Small loan accounts. The transactions appearing on a passbook is a conclusive evidence…
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Explained: Recording Transactions in Cash Book
As the name says, cash transactions related to cash received or payments made by an organization are only recorded in a Cash Book. This could include money that is received, paid out, and even deposited into or withdrawn from a bank account. All transactions in a cash book have two sides, debit and credit. All…
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Accounting: Columnar Accounting Mechanics, and Journalising
A business transaction is first recorded in a journal, also called a Book of Original Entry. Journalising is the process of recording a business’s financial transactions in a journal. The transactions entered in a Journal are the basis for posting to ledgers. Journal entries are also used for cross-checking when the ledger balance is not…
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Concept of Debits and Credits
Debits and credits are accounting terms that represent the two sides of a financial transaction. Debit is notated “DR” and credit is notated “CR”. The word debit comes from the Latin word “debitum” meaning “what is due” and the word Credit comes from “creditum”, meaning “something entrusted to another or a loan.” A debit (DR)…
Read article Account Categories in accounting explained
There are three different types of accounts in accounting. They are Real, Personal, and Nominal Account. Real Account: A real account, or permanent account, is a general ledger account that does not close at the end of a period or at the end of the accounting year. There are five primary account categories in real…
Explained: Recordkeeping in accounting
Recording in accounting refers to keeping a record of monetary business transactions, reflecting the correct picture of assets-liabilities, profits, loss, etc. Recordkeeping helps companies track each business transaction, including new equipment purchases, product sales, service costs, payroll expenses, etc. Accurate recordkeeping provides important information for legal and tax purposes. In addition, recording Transactions in the…
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